Subjective Ratings

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Baron Forex

AFB FX

This is our subjective view on how good the package is in this broker platform. For brokers offering multiple trading platforms, we rate the best one.

Execution:

From our experience trading a real account, this is how we rate this broker's order execution. Brokers with guaranteed fills get a boost in rating.

Transaction costs (spreads):

Since different brokers offer different currency pairs with different spreads, variable or fixed, commission or commission-free trading etc., the idea of judging transactions costs overall becomes somewhat subjective. This is where we try to capture the broker's overall willingness to keep your trading costs low.

User-friendliness:

How user-friendly is the trading platform? For brokers offering multiple trading platforms, we rate best one.

Platform Functionality:

Different platforms have very different levels of complexity. In general, more complex trading platforms give the user more flexibility in their trading, but involve a longer learning curve for new users to get accustomed to their idiosyncrasies. This rating measures the ability of the trading platform to complete complex tasks, most importantly in order management and reporting. For brokers offering multiple platforms, we rate the best one.

Platform Reliability:

One of the most annoying (and costly) complaints traders have about their brokers is that the trading platform crashes at the most crucial times. This rating attempts to get a handle on how the trading platform performs in terms of stability and reliability. Is the platform always available? Does it crash or freeze? How often? For brokers offering multiple platforms, we rate the best one.

Customer support:

How good a company's client support manage questions and problems is a very important aspect of their overall performance as a business. For this rating we consider the hours of operation, the different modes of contact (such as call back service, live chat, toll-free numbers etc.) as well as the staff's patience, eagerness to help, and most importantly, knowledge.

Rollover interest rates:

Again, since each broker has their own way to calculate overnight interest rate, or swap for each currency, it is not feasible to have an objective, quantitative way to judge their swap rates. The issue is further complicated because some brokers decide to offer swap-free accounts, some with extra fees added, some not, some for Islamic traders only, and some for the general public. This rating attempts to roll all of that into one.

Withdrawal processing:

One of the often-overlooked aspects of a brokers business is how quickly, efficiently, and inexpensively they process your withdrawals. For this rating we take into account the time it took us to get our withdrawals processed, the fees that were charged for those withdrawals (if any), any problems we encountered during the process, as well as the number of withdrawal methods available (such as PayPal, Moneybookers, etc.)

Average rating:

The arithmetic mean of all the above ratings, rounded to the nearest half-star.

Which regulating body, if any, is responsible for regulating this broker?

In business since year:

2008

2010

When was the business established? This is a measure of trustworthiness. If a business has been around for a long time, it is less likely to scam you or disappear overnight.

Broker Capital as of 10-2009

Unknown

Unknown

The amount of capital the company has on hand. CFTC registered companies are required to report this, but most other brokers do not.

Client Account Segregation:

Marfin Popular Bank, Cyprus or Standard Chartered Bank, UAE

Yes, client funds are kept separate from company operating capital

Some brokers choose on their own and others are required by regulators to keep client funds separate from the company's operating capital. This gives clients an extra layer of security in case the broker becomes insolvent and needs to go into bankruptcy. It should be noted that segregation does NOT constitute absolute safety of client funds in case of bankruptcy, but is a significant step nonetheless.

Collect Taxes on Earnings:

No

No

Does this broker report client earnings to any tax authorities? If so, which ones?

Prohibit clients from:

No

No

Some brokers, either due to government regulation, or due to their own risk management policies, choose to prohibit clients from the United States.

Deposit/Withdrawal methods:

Method

Deposit Fee

Withdrawal Fee

Credit Card

$0

$0-$50 depending on

Wire Transfer

$0

$0-$50 depending on

Method

Deposit Fee

Withdrawal Fee

Credit Card

$0

$0

Liberty Reserve

$0

$0

Moneybookers

$0

$0

Perfect Money

$0

$0

WebMoney

$0

$0

Wire Transfer

$0

$0

What methods are available to deposit and withdraw money to and from your trading account?

Main liquidity providers:

Several major banks in Switzerland and the UK

There are 6 liquidity providers, but names are unknown

Most brokers are somewhat secretive about this aspect of their business, but those who aren't certainly provide their clients with a valuable piece of information. The more liquidity that is available, the better order execution clients can expect. Knowing the institutions which provide this liquidity can also offer a glimpse into which currency pairs have sufficiently deep liquidity for your needs.

Trading Details

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Baron Forex

AFB FX

Browser platform:

None

AFB FX WebTrader

Does the broker offer a trading platform that can run in web browsers? If so, which one? Some brokers license their platforms from third-party providers, while some develop their own proprietary systems.

Downloadable platform:

Baron Forex Metatrader 4 (MT4)

AFB FX Metatrader 4 (MT4)

Does the broker offer a downloadable application for its platform? If so, which one? Some brokers license their platforms from third-party providers, while some develop their own proprietary systems.

Mobile platform:

None

Android,Blackberry,i-Mode,iPhone,Symbian (Nokia),Windows Mobile

Some brokers offer a simplified version of their trading platform that can run on mobile devices. Some of these brokers license their mobile platforms from third-party providers, while others develop their own proprietary mobile trading systems.

Phone dealing:

Yes

Yes

Does the broker offer clients a way to contact their dealing desk via telephone? This can be very helpful to traders who want to manage their positions when there is no internet connection available.

Order processing:

All orders routed through dealing desk.

ECN,STP No Dealing Desk

Does the broker pass your orders directly to a higher tier, or do they make a market among their clients and themselves first?

Account Types

Account

Maximum leverage

Minimum/Maximum deposit:

Minimum/Maximum trade size:

Mini Account

200:1*

$300/unlimited

10,000/unlimited

100k Account

200:1*

$2,000/unlimited

100,000/unlimited

Account

Maximum leverage

Minimum/Maximum deposit:

Minimum/Maximum trade size:

Professional Account

100:1*

High Deposit

100,000/5,000,000 units

Microlot trading available on request

Advanced Account

100:1*

$50,000/unlimited

100,000/5,000,000 units

Microlot trading available on request

Standard Account

200:1*

$5,000/unlimited

10,000/5,000,000 units

Microlot trading available on request

Micro Account

500:1*

$50/unlimited

1,000/5,000,000 units

Mini Account

400:1*

$1,000/unlimited

1,000/5,000,000 units

Most forex brokers offer different account types to clients, normally depending on the size of the account. Different trading conditions apply to each account type, with smaller accounts usually being allowed smaller deal sizes, and larger accounts being given lower transaction costs, extra services, better order execution or other promotions.

Swap-free accounts

Yes - no extra charges if trading volume exceeds 1.5 million per 30 day period. Otherwise $20 per 100,000 held over night.

Yes - no extra charges and available to everyone, not just Islamic traders

Does the broker offer accounts that do not carry any interest on positions held over night? This is of particular interest to Islamic traders who are prohibited from collecting/paying interest due to religious reasons. Some brokers levy additional charges for such accounts, because they are susceptible to abuse.

The number of instruments that this broker has available to trade. If you click on the "Show Details" link, you will see the full list.

No Dealing Desk Execution:

Not available

There is no dealing desk intervention

Some brokers offer 'no dealing desk' execution, which means client orders are automatically routed to a higher tier. Please note that some brokers use automated dealing desks. For this purpose we only consider only manual execution as having a "dealing desk".

Typical spread on EUR/USD:

2 pips (0.0002) FIXED

0.6 pips (Professional) to 2 pips (Micro)

EUR/USD spread during normal market conditions. Please note that the actual spread may be wider in illiquid market conditions.

Fixed spreads:

Yes

No

Some market makers decide to offer their clients fixed spreads, meaning that the spreads do NOT widen at any time, even during highly illiquid periods such as important economic releases. Please note however, that in most such cases, orders will be slipped or not executed, and that these fixed spreads are generally higher than variable spreads, and are not representative of the true market.

Guaranteed stop losses?

Yes, stop loss orders are guaranteed against slippage

Yes, limit and stop orders are guaranteed against slippage, except under market conditions

Some market makers offer a "no slippage" guarantee on some client orders. This is fairly common for stop-loss orders, but may also be expanded to include all standing orders.

Trailing Stops:

Client-side

Client-side

Many brokers offer traders the ability to set trailing stop-loss orders. These orders can be client-side or server-side. Since trailing stops are not real orders in the market, the trading platform has to take care of them. Client-side trailing stops run your computer and are only valid when your trading platform is open and online. Server-side trailing stops run on the broker servers, so they do not depend on you having the platform open.

OCO orders available:

No

No

Does the platform offer "One cancels other" order types?

If/then orders available:

No

No

Does the platform offer conditional order types?

Hedging capability:

Yes, clients can hold both long and short positions in the same currency pair at the same time.

Yes, traders can simultaneously hold both long and short positions in the same currency pair.

Does the broker allow traders to hold both long and short positions in the same currency at the same time? This is somewhat pointless, but some traders insist on it regardless.

Automated Trading:

Yes

Yes

Does the platform offer traders the ability to program and deploy automated trading systems?

Trading Hours:

Sunday 5:00 PM New York time until Friday 4:30 PM New York time

22:00 GMT on Sunday to 22:00 GMT on Friday

The forex is a 24/5 market but different brokers can choose different times at which they begin and their dealing each week. Some brokers offer "after hours" dealing. This normally incurs higher spread costs due to the thin liquidity though.

Timezone

GMT datafeed

GMT +2 (no Sunday bar)

This is the timezone of the broker's chart data feed. It can be important in some cases, particularly when it comes to "Sunday bars" on the charts, which are usually not full day bars, and as a result can throw off some technical analysis tools and mechanical trading systems.

Scalping allowed:

Yes, traders are free to practice any trading style.

Scalping is not allowed

The general rule is that market makers do not like scalping, while ECN/STP type brokers don't mind it. Some brokers choose not to follow that rule though. The exact definition of what scalping is can vary from broker to broker also.

Account currencies available:

CAD, EUR, USD

EUR, USD

Which currencies can your margin account be denominated in? Most brokers offer USD accounts, but an increasing number are starting to let clients have their accounts in EUR, JPY, GBP, and other currencies.